Wall Street's strong Wednesday now looks like an anomaly. The stock market started off in positive territory Thursday morning but resumed its recent downward trend later in the day as tech stocks in particular got roughed up, reports CNBC. The Dow fell 405 points, or 1.4%, to 27,534, the S&P 500 fell 59 points, or 1.7%, to 3,339, and the Nasdaq fell 221 points, or 1.9%, to 10,919. Apple shares were down about 4% in the afternoon, while Tesla dipped back into the red after being up 8%. Amazon and Netflix also were down.
“The market was ahead of itself in the technology sector and it still is,” David Bahnsen of Bahnsen Group tells the Wall Street Journal. And the recent slump “doesn’t mean all the froth has come out." Earlier in the day, the Labor Department reported that unemployment claims held steady, with about 884,000 Americans applying for benefits in the week that ended on Sept. 5. (Read more stock market stories.)